On 31 October 2019, a specialised panel constituted by the World Trade Organisation (WTO) released a report recommending the withdrawal of several export promotion schemes which are integral to India’s foreign trade policy.
In a step towards implementation of the recently notified Code on Wages, 2019 (Wages Code) which awaits a notification to be brought into force, the Ministry of Labour and Employment the draft Code on Wages (Central) Rules, 2019 (Draft Central Rules) on 1 November 2019. The Draft Central Rules will be available for public comments for a period of one month.
From having admitted the slowdown in the economy to announcing back to back measures to stabilise and improve the growth, the Government of India today defied all the criticism by announcing big bang tax reforms vide Taxation Laws (Amendment) Ordinance dated 20 September 2019 promulgated by the Hon’ble President of India (Ordinance). The tax reforms announced primarily pertain to significant reduction in corporate tax and capital gains tax rates to provide an impetus to manufacturing, employment and investment in India.
The Patent (Amendment) Rules, 2019 (Revised Rules) have come into force from 17 September 2019. The key highlights of the Revised Rules are broadly set out below:
In the recent case of Domino Printing Science Plc., In Re (AAR 1290 of 2012 decided on 23 August 2019), the Authority for Advance Rulings (AAR), ruled that shareholders of a company are liable to capital gains tax upon the conversion of a company to a Limited Liability Partnership (LLP) as the conditions of a tax neutral transfer are not fulfilled.
In line with the recent assurances from the Finance Minister of India regarding ending the tax harassment, the Central Board of Direct Taxes (CBDT) which is the apex body for administration of direct tax in India, has issued 2 circulars. These circulars are reflective of the recent statements that ‘penalty rather than prosecution is the priority of the Government’.
As mentioned in our previous update, the Industries, Energy and Labour Department of Maharashtra (Maharashtra Labour Department) revised the basic rate of wages prescribed for employment in shops and commercial establishments in Maharashtra (S&E), by nearly twice the amount previously prescribed.
The Securities and Exchange Board of India (SEBI), vide its circular SEBI/HO/IFSC/CIR/P/2019/91 dated 9 August 2019 (Circular) extended a magnanimous helping hand to alternative investment funds (AIFs) set up in the International Financial Services Centre (IFSC) regime by harmonizing the provisions governing investments by AIFs incorporated in IFSC with those provisions regarding investments applicable for domestic AIFs.
On 31 July 2019, the Companies (Amendment) Act, 2019 (Amendment Act) received assent of the President of India. We had written on the Amendment Act with special focus on the CSR related amendments (Proposed CSR Amendments) which is available here.
The Securities and Exchange Board of India (SEBI), vide its circular SEBI/HO/IFSC/CIR/P/2019/91 dated 9 August 2019 (Circular) harmonized the provisions governing investments by alternative investment funds (AIFs) incorporated in International Financial Services Centre (IFSC) with those provisions governing investments by domestic AIFs.
